Suncorp, IAG, QBE Fall After Australian Floods: Sydney Mover
Suncorp Group Ltd. (SUN) fell the most in five months in Sydney trading on concerns claims from floods caused by ex-tropical cyclone Oswald that lashed Queensland and New South Wales states would reduce earnings.
Suncorp, which gets more than a quarter of its premiums from Queensland, fell as much as 4.9 percent and was down 2.2 percent at 11:40 a.m. in Sydney. Insurance Australia Group Ltd. (IAG) dropped 1.5 percent and QBE Insurance Group Ltd. (QBE) slid 2.3 percent.
Floods have forced the Insurance Council of Australia, whose members sell more than 90 percent of the country’s premiums, to declare a catastrophe for parts of Queensland, where waters upturned cars and flooded streets. About 5,050 claims have been made so far with estimated insurance losses of A$43 million ($44.9 million), it said on Jan. 27.
Suncorp has received 4,500 claims from storms and flooding associated with the cyclone, the Brisbane-based company said in a statement today. Spokesmen for IAG and QBE didn’t immediately reply to messages seeking comment.
Queensland and NSW, which account for about half the nation’s economy, experienced about A$9 billion in lost output when they were hit by flooding and Cyclone Yasi in 2011.
To contact the reporter on this story: Narayanan Somasundaram in Sydney at email@example.com
To contact the editor responsible for this story: Chitra Somayaji at firstname.lastname@example.org